You will be fully responsible for:

• complying with all company and other statutory issues, including company law requirements to file accounts and returns to Companies House;
• the calculation and payment of VAT and corporation tax liabilities;
• payroll calculations and returns and various other statutory requirements;
• company administration including raising all company invoices, running a simple spreadsheet or accounting system to record transactions and appoint an accountant to deal with accounts, taxation and payroll matters on your behalf;
• ensuring the necessary insurances are in place to trade and protect your clients.

The MSC Bill was enacted into the Finance Act on 19th July 2007. There is uncertainty over the exemptions available for ‘Accounting Services’ that means service providers who currently claim to be exempt from the legislation may be caught. If you operate your own limited company and use the services of a provider to help with the running of the company who is found to be a provider of managed service companies, then the MSC legislation will apply to you. The bottom line is that you could face potentially crippling bills for back dated tax, penalties and interest.

Although there are financial advantages of working in this way, an Umbrella Company
would probably be more beneficial.